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For PCs, tablets tough to swallow
Sales of personal computers hurt by newer devices
Question of the Day
Personal computers may soon be going the way of landline phones and black-and-white televisions. New market figures suggest consumers are losing interest in traditional PCs, as flashy smartphones and tablets attract the buzz and the sales in a crowded marketplace dominated by the latest technology.
Three forecasts from prominent research firms delivered a big blow to the PC industry last week, warning sales will be lower than expected in 2011. In the first quarter, worldwide PC shipments were down 1.1 percent overall and 4.4 percent among consumers, prompting the International Data Corp. to cut its expected growth rate in computer sales for the year to 4.2 percent, down from its previous prediction of 7.1 percent.
“The PC market has definitely hit a slow patch,” said Loren Loverde, IDC’s vice president for worldwide consumer device trackers.
J.P. Morgan also cut its estimate by about 15 million units to 360.75 million computers sold this year. That’s a growth rate of only 2.8 percent, down from its 7 percent prediction earlier in the year.
Gartner, a technology research company, separately dropped its estimate to 385 million units, a 9.3 percent growth rate, down from its previous 10.5 percent prediction.
“Weak demand for consumer PCs was the biggest inhibitor of growth,” Mikako Kitagawa, principal analyst at Gartner, said in a statement. “Low prices for consumer PCs, which had long stimulated growth, no longer attracted buyers. Instead, consumers turned their attention to media tablets and other consumer electronics.”
Back in December, Goldman Sachs issued a similar warning, predicting tablet sales would cut into PC sales at of rate of 33 percent to 35 percent. “The fast rise in tablets could have significant implications across the technology industry as a whole,” Goldman Sachs analyst Bill Shope told the media.
These numbers are much lower than the nearly 20 percent growth rates the industry was noticing just a few years ago. But those days are long gone.
Apple Inc. has floated the term “post-PC world.” Scott Forstall, senior vice president of iPhone Software, has said, “We have a lot of customers coming to us and saying, ‘I want to buy an iPad as my only device.’ … So, now, if you want to cut the cord, you can.”
Mr. Forstall’s boss, Apple CEO Steve Jobs, caused a stir last week while touting the company’s latest software and services, and especially its reliance on “the cloud” — the cluster of industrial-scale data centers that are taking over the job of data storage and processing out of the hands of the humble personal computer.
“We are going to demote the PC to just a device,” Mr. Jobs told analysts and Apple enthusiasts last week. “We are going to move the digital hub, the center of your digital life, into the cloud.”
The idea has caught on with many tech blogs, including Engadget and ZDNet, which writes: “The post-PC era is real.”
But Apple hasn’t sold everyone on the idea. The so-called “death of the PC” has been repeatedly predicted by experts in the past, while the growth numbers stubbornly refused to back them up.
“I think they’ve been dazzled by other devices,” said George Shiffler, research director at Gartner. “Are we in a post-PC era? I’d say, ‘no.’ None of these devices will dominate the PC.”
CNET’s Stephen Shankland wrote, “I’ve been hearing ‘post-PC era’ so much now that I wince when I hear the term … . There is no post-PC era.”
© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.
About the Author
Tim Devaney is a national reporter who covers business and international trade for The Washington Times. Previously, he worked for the Detroit News, Grand Rapids Press, Portland Press Herald and Bangor Daily News. Tim can be reached at email@example.com.
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